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Gift Your Child a Secured Future in this New Year

Child Plans

The most important financial goal for a parent is to invest and save for their children’s future. It must be one of the most important aspects of financial planning for a parent. So, you can gift insurance plan to their children meeting their future requirements. Child plans bring home a bundle of joy further acting as a source of responsibility. It is a fundamental obligation of a parent to build a corpus for future of your children and in order to build corpus with a clear time frame, child plans help you to meet your financial goals and fulfilling your obligations as well.

Children insurance plans behave like a regular life insurance policy and are designed in a way that they meet the needs of a child at certain specific stages. You can develop a goal based strategy such that your insurance policy matures at the time when your financial goal materializes. You can use a child plan to develop a lump sum amount over a period of time. Some insurance plans also provide fixed sum of amounts at regular intervals in order to meet specific education requirements.

From a very early age, parents can start investing in a child insurance plan. A parent can decide to invest in a child plan in order to save funds for their children’s wedding, training and other monetary needs of the children. The various children insurance plans accessible in the market, provides a tax advantage as well including serving the basic requirement of a long term insurance plan. The available Child Plans comes up with built-in flexibilities which keep the policy active and renounce off the premium even after the death of the parents. These options are enormously useful as no other financial instrument offers such kind of flexible options. So, as an investor children plan can work wonders as well fulfilling two aspects in one policy i.e. investment and security to the children.

There are two types of children insurance plans available in the country- endowment based funds and Unit linked insurance plans (ULIPs). Endowment plans depend largely on the insurer’s performance and thus you have to depend upon bonus largely. As endowment plans principally invest in debt instruments, an individual can’t expect high returns. ULIPs on the other hand invest their built corpus in equity markets and thus can expect high rate of returns but they are considered as volatile as equity markets are themselves volatile.  But they range from conservative to aggressive options and you can decide accordingly.

So, an individual can secure their children’s future by purchasing child insurance plan. You can believe that it is a guaranteed product that provides money to the child when they need it the most. You can buy a child insurance plan online via preferred provider website or through insurance aggregators which has emerged as the most convenient source of buying it. Further, you can compare insurance premiums via comparison tools provided by these insurance aggregators helping you to buy the best policy available.

Written By: PolicyBazaar - Updated: 18 September 2020
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
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